The S&P/ASX All Ordinaries Index (ASX: XAO) slipped 9.6% over the month of June.
Negative sentiment about the economic outlook was a key factor weighing down the index.
Here are the five worst-performing ASX shares of the month, according to Capital IQ figures.
- BWX Ltd (ASX: BWX) down 51.5%
- MoneyMe Ltd (ASX: MME) down 51.3%
- Sezzle Inc (ASX: SZL) down 50%
- Incannex Healthcare Ltd (ASX: IHL) down 47.5%
- Humm Group Ltd (ASX: HUM) down 47.4%
What worried ASX investors in June?
People are starting to notice an increase in the prices of groceries and other day-to-day essentials, particularly electricity, that they simply can’t avoid.
Inflation is no longer something people read or hear about in the news, it’s actually in their face and affecting their weekly budgets.
On top of that, home loan interest bills have increased by 0.75% after the Reserve Bank of Australia increased the official cash rate by 0.25% in May and 0.5% in June.
On a $1 million home loan, that’s an extra $7,500 in interest payments per year or $625 per month.
So, investors are likely worried about how the companies they are invested in might be affected by these things. Some might also be wondering if they want to have their spare cash invested at the moment.
Why these ASX shares tanked
These ASX shares had a rockier month than most.
The companies released the following news to the ASX in June:
- BWX Limited announced a capital raising at a significant share price discount
- MoneyMe shares drifted downwards all month despite the company releasing no price-sensitive news except a media response denying it had tested a capital raising proposal with investors. But its share price skyrocketed today on news about its funding platform
- Sezzle did not release any price-sensitive news in June, however, its share price likely fell due to concerns about increasing inflation and competition and the threat of more regulation in the buy now, pay later (BNPL) space
- Incannex announced positive results in its phase 2 sleep apnoea trial in early June but the share price trundled lower for the rest of the month
- Humm shares fell due to the agreed termination of the company’s $250 million BNPL deal with Latitude and the resignation of the majority of the board.